Internet Update

Dot-com Mania

Dateline: 09/27/99

When I started putting together my Internet Indexes, there weren't that many Canadian companies that actually had .com in their name. A half dozen perhaps. But the numbers are swelling and it's getting hard to keep track of them all.

We've followed the so-called Net Miners - mining companies that decided there was more gold in that thar cyberspace then in them thar hills. Some still retain their old names, like Dejour Mines. Others have changed their names, and invariably, a .com suffix shows up. There's Stockscape.com, formerly Cornucopia Resources; Las Vegas from Home.com, formerly Bronx Minerals; Clickhouse.com, formerly Gleneagles Petroleum; Travelbyus.com, formerly LatinGold; and Global Investment.com, formerly Victory Ventures, among others.

But now they are getting too numerous. I've got 25 on my Metamorphosis Index now and if I added all the new ones, the number would swell to around 40. Yikes!

The easiest way to discover all the Canadian .coms is to search for the phrase ".com" at Carlson Online. It turns up 35 of them. Fifteen are already on my indexes, but 20 aren't.

Rather than continuously adding to the Metamorphosis Index, I've decided to consolidate it with the main index, my Canadian Internet Stock Average. This new CISA will only include stocks trading at $1.00 or more. This means moving five of the Metamorphosis stocks onto the CISA list. It would also have me remove eight stocks currently on the CISA index.

All the Internet stocks trading under a dollar will be put onto a new page - the Canadian Internet Penny Stock List. This new page lists the stocks along with links to a profile, the company's home page, a description of its business and its current stock chart. A handy quick reference for people wanting to find out more about them.

Of the twenty .com stocks not currently on my indexes, six are trading above $1.00. They are listed in the chart below and will be added to the CISA list next week. Two are not currently trading, though not formally delisted. They and the other 12 stocks under a dollar are on the initial Penny Stock List. The two not trading are listed as inactive.

Stock Website Business Chart
Adventurx.com Inc. Bikestar Bicycle Rental
Carbiz.com Inc. Carbiz.com Auto Broker
Goldengoals.com Ventures Inc. Goldengoals.com Sports Betting
Iceberg Media.com Inc. Virtually Canadian Online Broadcasting
Megawheels.com Inc. Megawheels.com Internet Auto Mall
SLMsoft.com Inc. SLMsoft.com E-commerce Solutions (Retail)

A few quick notes on the six stocks in the chart above. Adventurx.com is a bicycle rental company. It's connection to the Internet is tenuous at best as most of its business is tied in with providing bicycle rental facilities for hotels and resorts. Nevertheless, I am including it.

Carbiz.com and Megawheels.com are both auto brokers. Both were formerly other businesses. Carbiz was Data Gathering Capital Corporation until Sept. 17th. Megawheels was Westview Multimedia until late June. Westview had negotiated the purchase of Megawheels late last year.

Goldengoals was Contiki Resources until late August. Now it is an Internet gaming stock.

SLMsoft.com was an IPO in early August. It was formerly a privately held company and it is listed in the current Deloitte & Touche Fast Fifty list of the fastest growing companies in Canada.

And Iceberg Media.com was formerly Cable Copper Mines. On June 30th it changed its name to Iceberg. At the same time it acquired 100% of Virtually Canadian Broadcast Network, an award winning online broadcaster since 1997. This company looks quite interesting and will be the subject of next week's profile.

Movers & Shakers for Sept. 20-24, 1999

Click on the title above for this week's Movers & Shakers table.

Of the 91 stocks on our three indexes, 29 moved by more than 10% over the last week. Only 7 were advancers, and 22 were decliners. To a certain extent, our advance/decline ratio reflects the broader markets, which also had a poor week.

8 Crown Capital Corporation is now in its second consecutive week of double digit gains. The company acquired Starfire Technologies in August. Their Starpages is an Internet based advertising service.

But while 8 Crown is the only stock on our list to be into a second week of major advance, there are several that are into their second or even third week of large drops.

MedEra Life Science, Bid.com and Cambridge Minerals are into their second week and iCrystal is into its third week.

The major reversal of a trend was Travelbyus.com which had been gaining for five solid weeks, but suffered a setback this week as investors took profits and the price reached a consolidation level.

There are two stocks to note from this week's list. One is Corel Corporation which jumped considerably on a strong quarterly report, then consolidated in the $10.50 - $11.00 range. This company is one to watch. Not only has it reversed its fortunes to profitability, it is also on the cutting edge of the Linux boom. It will release its own version of Linux, which is now in beta-testing, by the end of 1999. It plans to release a Linux version of its popular WordPerfect Office Suite in 2000.

The other one to watch is Chapters Books. Chapters dropped almost 12% in the wake of its IPO spinoff - Chapters Online. This may represent a good buying opportunity.

Both Corel and Chapters are recommended as buys for aggressive investors by Pat McKeough in his Stock Picker's Digest.

New Additions to Our Indices

We added one stock, Chapters Online, to our CISA list this week.

Canadian Internet Stock Index
Metamorphosis Index
Yankee Index

As noted above, this is the last week for our Metamorphosis Index. It will be replaced by the Canadian Internet Penny Stock List of Internet stocks trading at less than a dollar a share. All the stocks on the current Metamorphosis Index that are trading over a dollar a share will be added to the Canadian Internet Stock Average next week.

If you really hate to see the Metamorphosis Index go, let me know and if there's enough demand, I'll keep it. The Yankee Index stays for now.

Our profiles this week are Chaters and Chapters Online, which Chapters Books spun off as an IPO this past week.

Chapters Inc. Chapters Online

Comments? Suggestions? Why not post them on our Bulletin Board or email me.

E-mail me!


Recent Articles

09/23/99 - Best of the Net: i|money
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09/20//99 - David vs. Goliath
Regional Cablesystems takes on the big boys and we update our Internet indexes and Movers & Shakers list.

09/18/99 - Book Review: Krash
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09/13//99 - Internet Update: Stox.com Profiled
Along with our Movers & Shakers list and updates to our Internet indices, we profile Stox.com.


Investing (Canada) Notes

Disclosure: The author may own shares in some of the securities listed.

Coming Soon: I'm working on a Networking Page. This will let people submit their professional profiles to be posted so they can be contacted by potential customers and other people working in their field. If you would like to be among the first profiled on this new page, send me a short email with the following information: name, company, location, website, email, and objectives. The latter can be a short paragraph.

Please note that we are geared towards Canadians or those interested in investing in Canada so we ask that your submission be relevant. Also, we accept only personal profiles, not corporate ones. Find out more about this on Thursday.

As part of this new section, we'll also be accepting actual business cards. Scan your card and send the gif or jpg to me, or send me your actual business card and I will scan it for you and post it. If you're interested, email me and I'll tell you where to snail mail it.

Currently reading: I recently received a review copy of Paul Lermitte's Allowances, Dollars and Sense: A Proven System for Teaching Your Kids About Money. That may take a few weeks to get to. But you may want to check out his new Making Allowances website in the meantime. It is a superb site for kids based on Paul's book.


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